Dáil Éireann Debate, Tuesday - 5 July 2022
419. Deputy Cian O'Callaghan asked the Minister for Social Protection if grant funding to cover the costs of staff redundancies in jobs clubs will be provided to prevent costly wind-up processing involving insolvency; and if she will make a statement on the matter. [36013/22]
Amharc ar fhreagraMy Department contracts with different service providers for a range of employment services including those provided by Job Clubs, Local Employment Services and JobPath services. Contractually, any payments made to contractors are solely related to the delivery of these employment services. There is no contractual provision for additional payments to contractors related to their fiduciary duties as Board members or employers. Furthermore the contracts for service with Job Club providers are specific in that matters related to staff employment are solely and explicitly the responsibility of the employer, in this case, the contractor. This includes responsibility for any redundancy payments should they arise.
My Department does not have a responsibility to manage or fund the legal obligations of external contractors. The type of contract the Deputy refers to have been previously closed by other contractors or terminated by the Department within the guidelines and in line with the contracts, there has been no previous provision or requirement for additional payments outside of the allocated budget.
Specifically in regard to redundancy payments. It is the employer’s responsibility to pay statutory redundancy payments to all eligible employees. If an employer is unable to pay due to financial difficulties or insolvency, an application for payment from the Social Insurance Fund (SIF) under the Redundancy Payments scheme can be submitted to the Department of Social Protection (DSP). Applications can be made through the welfare partners website, www.welfarepartners.ie, the Redundancy and Insolvency Unit in my Department can provide information regarding redundancy payments to any employer who requires it.
